The Tamil Nadu Electricity Regulatory Commission (TNERC) has ended the free power supply regime in the state. The TNERC did away with the 13-year-old free power supply scheme to farmers and hutment dwellers.
The tariff revision is expected to net the TN Electricity Board an additional Rs 1,398.80 crore, which would be enough to cover its projected deficit. TNERC also effected a steep hike in power charges for domestic and other low tension consumers. The revision came into effect from Sunday.
R Balasubramanian, the secretary of the TNERC, said farmers owning pump sets, would have to pay a flat rate of Rs 250 per HP per annum or a metered rate of 20 paise per unit.
For hutment dwellers charges fixed at Rs 10 (fixed charges) or 50 paise per unit if the supply is metered. The new rates will be reflected from the September bill of these categories.
The TNERC decision follows a recommendation by the cash-starved TNEB to hike tariff. The TNERC has also rationalised power charges for high tension consumers.
The TNERC announced an increase of 22.13 per cent for domestic customers, 16.61per cent for educational institutions, 7.13per cent for cottage and tiny industries, 10.23per cent for industries including IT companies and 19.96 per cent for commercial consumers.
The TNERC abolished the differential tariff for metropolitan areas and non-metro areas for both HT and LT categories. There's a 6.69 per cent hike for industries, 4.40 per cent for recognised educational institutions and 14.37 per cent for commercial establishments. Powerlooms and places of worship have been exempted from the hike.
For low tension domestic consumers, the hike is 30 paise per unit. For commercial connections the Commission hiked fixed charges to Rs 30 from Rs 10.
The TNEB in a statement said even after the hike, tariff for domestic consumers was on par with states like Maharashtra and Kerala and lesser than what being levied in states like AP, Gujarat, West Bengal, Karnataka and UP.
